DCT reported gross profit of $1.5M during Q4 2012, down 28% from Q4 2011. Gross profit margin of 36% in Q4 2012 decreased from 42% in Q4 2011, due to the discontinuation of certain product lines and the related inventory reserve for such discontinued products.

Total operating expenses during Q4 2012 were $1.8 million, down 12% from Q4 2011 as the Company reduced nonessential overhead spending to align with decreased revenues. SG&A expenditures decreased by 21% in Q4 2012 as compared to Q4 2011. DCT continued its strategic investment spending in R&D to fuel growth and product expansion, increasing R&D expenditures by 27% in Q4 2012 over Q4 2011.

Q4 2012 EBITDA* (earnings before interest, taxes, depreciation and amortization) was ($121,000) versus $379,000 for the same period in 2011, a decrease of $500,000.

DCT ended Q4 2012 with a strong financial position, reporting no debt, working capital of $5.4 million, and an available borrowing capacity on its bank line of credit of over $1.7 million.

"Fourth quarter results were in line with expectations as DCT continues to execute in a challenging market," said Carolyn Ellis, DCT's chief financial officer. "Looking into 2013, we are improving our business by restructuring our executive management team and focusing our product development efforts on the market for smart device capture, cloud-enabled document management, and secure scan-to-cloud solutions. Under the guidance of DCT's new CEO Michael Campbell, we are better-positioned to bring forward a new generation of product innovations."

"Our mandate is clear" said Michael Campbell, CEO and president. "The company's performance in the fourth quarter and our view of the market in 2013 compels us to align operations with fiscal reality and accelerate execution of our new strategy."

About Document Capture Technologies

Document Capture Technologies (DCT) (OTCBB: DCMT) is a leading provider of document and information management products. Built on a decade-long legacy in the design, manufacture, and sale of USB-powered scanners, DCT will introduce a new generation of business efficiency with both hardware and software platforms.

This press release is neither an offer to sell nor the solicitation of an offer to buy any securities of DCT.

Forward-Looking Statements

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on current expectations and are subject to a number of known and unknown risks, uncertainties and other factors beyond the Company's control that could cause actual events and results to differ materially from these statements. These risks include, without limitation, that there can be no assurance that any strategic opportunities will be available to the Company and that any strategic opportunities may only be available on terms not acceptable to the Company. These statements are not guarantees of future performance, and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. DCT undertakes no obligation to update publicly any forward-looking statements.

*The Company is providing a non-generally accepted accounting principles financial measure, EBITDA (specifically defined by the Company as operating earnings before interest, taxes, depreciation included in operating expenses and amortization), because (i) the Company believes that this figure is helpful in allowing individuals to assess the ongoing financial performance of the business; (ii) the Company uses EBITDA, along with other GAAP measures, as a measure of profitability because EBITDA helps the Company compare its performance on a consistent basis by removing from its operating results the impact of non-cash expenses; and (iii) non-GAAP performance measures provide an additional analytical tool to clarify the Company's results from operations and helps the Company to identify underlying trends in its results of operations.

EBITDA is a non-GAAP measure and has limitations because it does not include all items of income and expense that impact the Company's operations. Management compensates for these limitations by also considering the Company's GAAP results. The non-GAAP financial measure the Company uses is not prepared in accordance with, and should not be considered an alternative to, measurements required by GAAP. Following is a reconciliation of operating loss to EBITDA (in thousands):